What is the Solar Tax?
- The Solar Tax refers to any kind of fee, charge, or tax that is imposed on people just because they have solar panels on their roof.
- The Solar Rights Alliance is opposed to a Solar Tax of any form.
- We believe a Solar Tax unfairly penalizes people for doing a good thing that benefits society.
- We also believe a Solar Tax is likely illegal because it discriminates against a certain class of customers.
What Solar Taxes have been proposed?
- The proposals have varied over the years, but the principle behind them has been the same: the more energy your solar panels produce, the higher the Solar Tax would be.
- One proposal in 2021 would have been as much as $700 per year for the average solar consumer.
- Recent proposals would put these charges on your utility bill, but we are looking out for other versions as well.
Who is pushing a Solar Tax?
- PG&E, Edison, and SDG&E have been pushing for a Solar Tax for several years. We believe that their goal is to eliminate the savings you get from rooftop solar, and make you pay them no matter what.
- In 2021 and 2022 alone, they tried for a Solar Tax three times, all of which were defeated after a public outcry. Here are details from those efforts:
- They unsuccessfully tried again in 2024, working with Governor Newsom to try and slip a Solar Tax in his proposed budget.
Where do things stand with a Solar Tax now?
- Gov. Newsom’s Public Utilities Commission recently proposed a Solar Tax again. (CPUC proposal, “Grid Benefits Charge,” pp. 16-17).
- They have not acted yet on this proposal, but we are watching them closely.
It makes no sense to tax rooftop solar.
- Making your own solar energy on your property is no different than turning off the lights or hang-drying your clothing.
- Like other forms of energy conservation, rooftop solar reduces the burden on the grid and lowers the need for utilities to spend as much on infrastructure, like poles and wires.
- A recent study that was endorsed by a dozen energy experts and economists found that rooftop solar saved all ratepayers $1.5 billion in 2024 alone.
- The utilities and the Newsom Administration justify their Solar Tax by falsely blaming rooftop solar for California’s high rates. This claim has been debunked by numerous energy experts.
- The bottom line: taxing rooftop solar is as wrong as taxing people for hang-drying their clothing.
